ForexLive European FX news wrap: Risk-off classic, crypto turmoil

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Headlines:Dollar, yen bid across the board on risk-off vibesBitcoin in big trouble as plunge below $30,000 looks to holdNo brakes on the Chinese yuan slide just yetECB’s Kažimír: Ready to hike in JulyECB’s Makhlouf: The era of negative rates is reaching its conclusionUK Q1 preliminary GDP +0.8% vs +1.0% q/q expectedSwitzerland April producer and import prices +1.3% vs +0.8% m/m priorMarkets:JPY leads, AUD and NZD lagEuropean equities lower; S&P 500 futures down 0.4%US 10-year yields down 7 bps to 2.844%Gold down 0.3% to $1,847.43WTI crude down 1.3% to $104.33Bitcoin flat at $28,411It is a risk-off day in markets in general but not without a side dish of drama in the crypto space.The infamous Tether lost its $1 peg today, following suit from Terra’s crash from its own $1 peg this week. That sent cryptocurrencies into a spiral with Bitcoin tumbling to $25,000 levels at one point before steadying a little.Elsewhere, the bout of risk aversion continues to carry on as well. European equities slumped and are down nearly 2% across the board in catching up to Wall Street losses yesterday while US futures are also keeping lower across the board, with tech lagging again.The bond market remains bid for a fourth straight day this week and that is keeping things more interesting but a key implication for currencies is that it is helping to bolster the yen after its freefall since March.USD/JPY is down 1% to 128.60 levels as the yen is the runaway leader in the FX space. The dollar is the other beneficiary from the risk-off mood as it is posting a solid advance across the board as well.EUR/USD is down 0.8% to fresh lows since January 2017, eyeing the 1.0400 level. Meanwhile, GBP/USD dribbled lower to 1.2165 before recovering slightly now to 1.2210 but still down 0.3% on the day.The aussie and kiwi are the laggards in a classic tale of risk aversion today, with AUD/USD falling 0.9% to 0.6875 now – its lowest since June 2020.In the commodities space, oil is also down a little over 1% at around $104 but is arguably still rather resilient. Meanwhile, silver is one of the more notable movers as it is down over 2% and falling below $21 for the first time since July 2020.

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